📊 Market Analysis: Can the Euro Hold Its Ground Against the USD?

Product: EUR/USD

Prediction: Increase

🟢 Fundamental Analysis:

The Euro climbed higher against the US Dollar for the third day in a row, hitting a new high for the year at 1.1120. This rise was fueled by a weakening US Dollar, as investors anticipate the Federal Reserve to start lowering interest rates in September. The Fed's potential rate cuts, combined with the European Central Bank's expected interest rate increases, could give the Euro an additional boost. However, the US economy is projected to perform better than Europe in the long term, which might limit the Euro's gains. Important events to watch this week include the release of the FOMC Minutes, flash PMIs, a speech by Fed Chair Jerome Powell at Jackson Hole, and testimony by the Bank of Japan's Governor Kazuo Ueda.

🔵 Technical Analysis:

EUR is expected to continue its upward trend against USD, potentially breaking its 2024 high of 1.1119, followed by the December 2023 high of 1.1139, and then the 2023 peak of 1.1275. However, if the pair falls below the crucial 200-day moving average at 1.0843, the upward trend could be disrupted. The immediate support level is at 1.0978 (55-SMA), followed by 1.0949 and 1.0881. The technical indicators suggest a strong positive bias, with the Relative Strength Index above 80.

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